75TH CONG., 3D SESS.-CH. 13-FEB . 3 , 1938 "SEC. 2 . (a) The Administrator is authorized and empowered, upon such terms and conditions as he may prescribe, to insure banks, trust companies, personal finance companies, mortgage companies, building and loan associations, installment lending companies, and other such financial institutions, which the Administrator finds to be qualified by experience or facilities and approves as eligible for credit insurance, against losses which they may sustain as a result of loans and advances of credit, and purchases of obligations represent- ing loans and advances of credit, made by them on and after the date of the enactment of the National Housing Act Amendments of 1938 and prior to July 1, 1939, or such earlier date as the President may fix by proclamation upon his determination that there no longer exists any necessity for such insurance in order to make ample credit avail- able, for the purpose of financing alterations, repairs, and improve- ments upon urban, suburban, or rural real property, by the owners thereof or by lessees of such real property under a lease expiring not less than six months after the maturity of the loan or advance of credit. In no case shall the insurance granted by the Administrator under this section to any such financial institution on loans, advances of credit, and purchases made by such financial institution for such purposes on and after the date of the enactment of the National Housing Act Amendments of 1938 exceed 10 per centum of the total amount of such loans, advances of credit, and purchases. The total liability which may be outstanding at any time plus the amount of claims paid in respect of all insurance heretofore and hereafter granted under this section and section 6, as amended, shall not exceed in the aggregate $100,000,000. "(b) No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it if the amount of such loan, advance of credit, or purchase exceeds $10,000 with respect to loans, advances, or purchases for financing repairs, alterations, or improvements upon or in connection with existing structures, or exceeds $2,500 with respect to loans, advances, or purchases for financ- ing the building of new structures, nor unless the obligation bears such interest, has such maturity, and contains such other terms, condi- tions, and restrictions as the Administrator shall prescribe in order to make credit available for the purposes of this title." SEC. 3. Title II of the National Housing Act, as amended, is amended to read as follows: "TITLE II-MORTGAGE INSURANCE "DEFINITIONS "SECTION 201. As used in section 203 of this title- "(a) The term 'mortgage' means a first mortgage on real estate, in fee simple, or on a leasehold (1) under a lease for not less than ninety- nine years which is renewable or (2) under a lease having a period of not less than fifty years to run from the date the mortgage was executed; and the term 'first mortgage' means such classes of first liens as are commonly given to secure advances on, or the unpaid pur- chase price of, real estate, under the laws of the State, district, or Ter- ritory in which the real estate is located, together with the credit instruments, if any, secured thereby. "(b) The term 'mortgagee' includes the original lender under a mortgage, and his successors and assigns approved by the Adminis- trator; and the term 'mortgagor' includes the original borrower under a mortgage and his successors and assigns. Insurance of finan- cial institutions against losses from loans, etc. Time limitation. Financing of repairs, etc., upon real prop- erty. Limitation on amount of insurance. Total liability. 49 Stat. 1233 . 12 U. S. C., Supp. III, § 1706a. Existing structures, limitation. New structures. Interest, maturity, etc. 48 Stat. 1247. 12U.8.C. §1707; Supp. III , § 1709. Title II-Mortgage Insurance. Definitions. "Mortgage." "First mortgage. " "Mortgagee." "Mortgagor." 52 STAT.]
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